Home Loan – Compare & Apply Housing Loan Online

Banks and Housing Finance Companies (HFCs) lend money to buy homes. You can get a loan of 75% to 90% of the property's value, depending on your credit history. The loan duration can be as long as 30 years, and Bajaj Housing Finance offers up to 40 years. At mybankingtips.com, we help you compare interest rates and features from different banks and HFCs. You can easily apply online for the best option that suits your credit score.

Key Highlights of Home Loan

Interest Rate Starting from 8.30% p.a.
Loan Amount Varies on case-to-case basis
LTV Ratio Up to 90% of the property value
Tenure Up to 30 years with some lenders extending till 40 years
Processing Fees 1% to 2% of the loan amount (may vary across lenders)

The interest rates for home loans depend on various factors like your credit score, LTV ratio, job profile, monthly income, loan amount, and employer’s profile. Top banks and Housing Finance Companies (HFCs) offer different interest rates on home loans.

Name of Lender Interest Rate (p.a.)
State Bank of India 8.40% – 10.15% Apply Now
ICICI Bank 8.75% onwards Apply Now
HDFC Bank 8.35% onwards Apply Now
Kotak Mahindra Bank 8.70% onwards Apply Now
Union Bank of India 8.35% – 10.90% Apply Now
RBL Bank 8.90% onwards Apply Now
Federal Bank 8.80% onwards Apply Now
Bajaj Housing Finance 8.50% onwards Apply Now
L&T Finance Limited 8.60% onwards Apply Now
Standard Chartered Bank 8.65% onwards Apply Now
Canara Bank 8.40% – 11.25% Apply Now
Bank of India 8.30% – 10.75% Apply Now
Indian Overseas Bank 8.40% onwards Apply Now
Bank of Maharashtra 8.35% – 11.15% Apply Now
UCO Bank 8.45% – 10.30% Apply Now
Bandhan Bank 9.16% – 15.00% Apply Now
Punjab & Sind Bank 8.50% – 10.00% Apply Now
South Indian Bank 9.84% – 11.69% Apply Now
Punjab National Bank 8.40% – 10.25% Apply Now
IDFC First Bank 8.75% onwards Apply Now
PNB Housing Finance 8.50% – 14.50% Apply Now
Tata Capital Housing Finance 8.70% onwards Apply Now
Bank of Baroda 8.40% – 10.90% Apply Now
Axis Bank 8.70% – 13.30% Apply Now
LIC Housing Finance 8.35% – 10.75% Apply Now
Karnataka Bank 8.58% – 10.58% Apply Now
Indiabulls Housing Finance 8.75% onwards Apply Now
Dhanlaxmi Bank 9.35% – 10.50% Apply Now
Tamilnad Mercantile Bank 9.45% – 9.95% Apply Now
Karur Vysya Bank 8.95% – 11.00% Apply Now
Repco Home Finance 9.50% onwards Apply Now
GIC Housing Finance 8.80% onwards Apply Now
Aditya Birla Capital 8.80% – 14.75% Apply Now
ICICI Home Finance 9.20% onwards Apply Now
Godrej Housing Finance 8.55% onwards Apply Now
HSBC 8.45% onwards Apply Now
NAVI Finance 8.55% onwards Apply Now

Interest rates as of 1 February 2024

  • A Home Construction Loan is provided to individuals for building a house. The loan disbursements are depend to the various stages of the construction process.
  • A Home Renovation/Improvement Loan is for covering the costs of renovation your existing house. The interest rate for this type of loan is usually the same as a regular home loan.
  • A Home Extension Loan is for people who need money to make their current house larger or add extra space. With this loan, lenders typically provide 75% to 90% of the estimated construction cost, depending on the loan amount and LTV ratio.
  • An Interest Saver Loan is like a home loan overdraft where your home loan account is connected to your bank account. Any extra money you deposit in the bank account beyond the monthly installment is treated as a prepayment towards the loan. This helps in reducing the interest amount you have to pay.
  • A Bridge Loan is a brief home loan designed for individuals looking to purchase a new house using the proceeds from selling their current one.
  • A Step-Up Loan enables borrowers to have lower monthly payments in the early years of the loan and the flexibility to increase the EMI amount later on. This makes it more affordable for young professionals who are starting their careers.
  • A Home Purchase Loan allows you to buy a house, whether it's already built, under construction, or a pre-owned home. It can also be used for purchasing a residential plot and constructing a house on it within a specified timeframe.
  • A Composite Loan lets you buy a plot and construct a house on it. The initial disbursement in this type of loan is for purchasing the plot, and further payments are made based on the different stages of house construction.
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The fees and charges for a Housing Loan can vary a lot depending on the lender and the credit profiles of loan applicants. To get an idea of the Home loan fees and charges, check the table below.

Particulars Charges
Processing Fee 1% – 2% of loan amount
Foreclosure/Prepayment Charges For floating rate: Nil
For fixed rate: Around 2% – 4% on the principal outstanding
Overdue Charges on EMI 2% per month of the unpaid EMI
EMI Bounce Charges Around Rs 400
Legal Fee As per Actuals
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The common eligibility criteria to apply for Home Loan is as follows:

  • Credit Score: Preferably 750 and above
  • Minimum Age: 18 years with some lenders setting the minimum age of 21 years
  • Maximum Age: Usually 70 years at the time of loan maturity with some lenders extending the tenure till 75 years of age
  • Work Experience: At least 2 years (for salaried)
  • Nationality: Indian Residents, Non-Resident Indians (NRIs), and Persons of Indian Origin (PIOs)
  • Minimum Salary: At least Rs. 25,000 per month (varies across lenders & locations)
  • Loan Amount: Up to 90% of property value
  • Business Continuity: At least 3 years (for self-employed)

Note: In addition to the mentioned factors, your eligibility for a home loan is also depends by the property you're purchasing and its location.

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  • Age Proof Documents: Copy of any one (PAN Card, Aadhaar Card, Passport, Bank Passbook, and Driving License, Birth Certificate, 10th Class Mark-sheet)
  • Address Proof Documents: Copy of anyone (Bank Passbook, Voter’s ID, Ration Card. Utility Bills (Telephone Bill, Electricity Bill, Water Bill, Gas Bill), Passport, and LIC Policy Receipt)
  • Identity Proof Documents: Copy of any one (Aadhaar Card, PAN Card, Passport, Voter’s ID Card, and Driving License)
  • Property-related Documents: , Registered sale deed, allotment letter, NOC from Society/Builder, detailed estimate of the cost of construction of the house and an approved copy of the building plan.
  • Property-related Documents: NOC from Society/Builder, detailed estimate of the cost of construction of the house, registered sale deed, allotment letter, and an approved copy of the building plan.
  • Income Proof Documents for Salaried: Latest Payslips, Copy of Form 16, IT returns (ITR) of past 3 years, Investment Proofs (if any).
  • Income Documents for Self Employed: Proof of Business Address, Business License Details, ITR of last 3 years, Balance Sheet and Profit & Loss Account Statement of the Company/Firm.

Documents Required for Non Resident Indian (NRI) Applicants

Proof of Identity: Passport with VISA stamps / PIO Card

Proof of Address: Government document mentioning the current overseas address.

Proof of Income Documents for Salaried: Salary Certificate/ Latest Payslips (in English), Work Permit/ Employment Contract / Appointment Letter / Offer Letter (Duly attested by employer/ Consulate / foreign office / embassy in case it is in any other language), Latest bank statements showing salary credits NRE / NRO account (if any), Form P60/P45 and latest employment contract (for salaried).

Income Documents for Self-Employed: Latest ITR, Bank Statements of Overseas Account and Balance Sheets and P&L Accounts audited or certified by a C.A. , Business License & Address Proof / License of Professional Practice (for Doctors, Consultants, etc.) , Registration Certificate of Establishment (For Shops, Factories & Other Establishments), A copy of Continuous Discharge Certificate (CDC) for applicants employed in the merchant navy.

Property Documents:

  • Latest tax paid receipt
  • Original title deeds tracing the title of the property
  • Encumbrance Certificate
  • A copy of approved drawings of proposed construction/ purchase/ extension
  • Receipts for payments made for buying the dwelling unit
  • Allotment letter from the co-operative society/ association of apartment owners
  • ULC clearance/ conversion order, etc.
  • Receipts for investing the margin money through normal banking channels from the NRE /NRO account(s) in India
  • Agreement for sale/ sale deed/ detailed cost estimate from the Architect/ Engineer for property to be purchased/ constructed/ extended/ improved

Other Documents:

  • Credit Bureau Report (in case available in the country where you are residing)
  • If any previous loan from other Banks/Lenders, then Loan A/C statement for the last 1 year

Note: The list provided above is a general guide, and your lender may request additional documents as part of the home loan application process.

Documents Required for Non Resident Indian (NRI) Applicants

If your home loan application was declined, follow these tips to increase your chances of approval the next time you apply for a Home Loan:

1. Keep your credit score at 750 or higher.

2. Check your credit report for any mistakes.

3. Add a family member who earns income as a co-applicant.

4. Save more money for the down payment on your home.

5. Compare loan offers from different banks before deciding.

6. Don't apply for multiple loans in a short period.

7. Make sure your total monthly loan payments, including the home loan, are within 55-60% of your monthly income.

At mybankingtips.com, you can compare and apply for eligible home loan offers in three simple steps:

Step 1: Provide Your Details

Fill in your personal information and loan requirements.

Step 2: Review Offers

As per your details, you'll receive a list of eligible home loan offers. Compare the interest rates, processing fees, and maximum loan amounts offered by each provider.

Step 3: Complete Application

Choose the home loan offer that best fits your needs and submit your application.

Once your application is submitted successfully, you'll receive confirmation along with a reference number for future correspondence. Our loan expert will then reach out within 24 hours to proceed with your application.

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People with Home Loans can enjoy tax benefits under different sections of the Income Tax Act. These benefits help borrowers save a significant amount of money each year. Here are the tax advantages you can receive on your home loan EMI payments:

Section of Income Tax Act Nature of Home Loan Tax Deduction Max. Tax Deductible Amt.
Section 24(b) Interest paid Rs. 2 lakh
Section 80C Principal (including stamp duty and registration fee) Rs. 1.5 lakh
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Dos Don’ts
Maintain a credit score of 750 or higher. Avoid applying for a loan without checking your credit score first.
Ensure that your total monthly EMI obligations do not exceed 50-60% of your net monthly income. Avoid using your emergency fund for a higher down payment.
compare home loan offers from different lenders. Apply with multiple lenders within a short span
Try making larger down payment to reduce LTV ratio Forgo existing investments for making higher down payment
Increase your loan eligibility by adding a co-applicant when applying for a loan. Plan EMI payments without considering the monthly contributions you need to make towards your crucial financial goals
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1. Why should I avail home loans from MybankingTips?

Home loan features like interest rates, loan amount, tenure, and processing fees can differ among lenders based on their own costs and how they assess the credit risk of applicants. Using a platform like mybankingtips.com lets you compare home loan offers from over 20 partner banks and HFCs. This way, you can look at different options based on your monthly income, repayment ability, credit score, job type, employer details, and other relevant eligibility criteria.

2. Which factor determines my home loan eligibility?

Lenders decide if you can get a home loan by looking at things like your credit score, how much you can repay, your age, how much money you make, the type of job you have, how long you've had your job, details about your employer (if you have a job), how well your business is doing (if you have one), and where the property is located.

3. Which bank is best for home loan?

For most people, it's good to go with a lender that offers the lowest home loan interest rate. This way, you can save money on the total interest you pay. But, it's not just about the interest rate – you should also consider the loan duration, amount, fees, and how long it takes to get the loan approved. Instead of checking each lender's website, you can use online marketplaces like mybankingtips.com to easily compare home loan rates, tenure, fees, and other details from different banks.

4. What is the maximum home loan that I can get?

Some lenders figure out your maximum home loan eligibility using the Multiplier Method. They calculate the eligible loan amount based on a set multiple of your net monthly income. This could be up to 72 times your gross monthly income or 6 times your gross annual income if you're not a salaried individual. Others use the EMI/NMI Ratio, where your total EMI payments should be within a specific proportion, typically 50-55% of your income. Some lenders may use a combination of both methods to determine how much loan you're eligible for.

5. Can I get a home loan for the entire property value?

No, you can't get a home loan for the entire property value. The Reserve Bank of India (RBI) has set limits on the Loan-to-Value (LTV) ratio for housing loans. According to RBI guidelines, the LTV ratio can be up to 90% of the property value for loan amounts up to Rs 30 lakh. For loan amounts above Rs 30 lakh and up to Rs 75 lakh, the LTV ratio limit is up to 80% of the property value, and for loan amounts above Rs 75 lakh, the LTV ratio can go up to 75% of the property value. This means that the borrower needs to contribute at least 10% of the property value as a down payment.

Banks and HFCs further determine the LTV ratio based on the risk assessment and credit profile of the loan applicant. Those with lower creditworthiness are typically offered a lower LTV ratio.

6. Which home loan is the best for me?

The best home loan for you is the one with the lowest interest rate, as it helps you save on overall interest costs. However, factors like loan tenure, amount, Loan-to-Value (LTV) ratio, processing fees, and the time taken for loan disbursal are also important. To simplify your search, you can use online financial marketplaces like mybankingtips.com. It allows you to check and compare home loan rates, tenure, processing fees, LTV ratio, etc., offered by different lenders based on your credit profile.

7. What home loan can I get with a poor credit score?

It's hard to predict which home loan you can get with a low credit score because each lender has different rules about credit risk. So, if you have a low credit score, it's a good idea to check online marketplaces like mybankingtips.com. You can compare home loan rates and other details from different banks and HFCs to find the best option for you.

8. How much credit score should I have to get a housing loan?

Lenders usually like to approve housing loans for applicants with credit scores of 750 and above. Higher credit scores indicate responsible credit behavior, making it less risky for lenders. That's why many lenders also offer lower interest rates on home loans for applicants with high credit scores. However, some lenders may still provide home loans to applicants with low credit scores but at higher interest rates. It's essential to check your credit score regularly.

9. Who can co-sign a home loan?

Your spouse or close blood relatives like your father, mother, siblings, and children can co-sign a home loan with you. Additionally, if there are co-owners of the property, they must also be co-applicants for the housing loan.

10. What is the EMI for Rs. 20 lakh home loan?

To calculate the EMI for a Rs. 20 lakh home loan, you need to consider the interest rate and tenure. Let's assume the interest rate is 8.50% per annum, and the tenure is 20 years. In this case, your home loan EMI would be Rs. 17,356. To calculate EMI for different tenure and interest rate values, you can use a home loan EMI calculator.

11. Can I prepay my outstanding housing loan amount?

Yes, you can make prepayments on your home loan. For floating-rate home loans, typically, there are no prepayment charges. However, in the case of fixed-rate home loans, lenders may impose prepayment charges, usually ranging from 2% to 4%.

12. Can I avail tax deductions on my home loan?

Yes, the repayment of the principal amount on your home loan qualifies for tax deductions under Section 80C of the Income Tax Act. Additionally, the repayment of the interest component is eligible for tax deduction under Section 24(b) of the IT Act.

13. How to improve your chances of getting a home loan?

To improve your chances of getting a home loan, follow these tips:

1. Maintain a credit score of at least 750.

2. Consider adding a family member with income as a co-applicant.

3. Choose a lower Loan-to-Value (LTV) ratio.

4. Compare home loan offers from various banks and HFCs to find the best deal.

5. Ensure that your total EMIs, including the proposed home loan EMI, don't exceed 55-60% of your net salary.

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